So I have an Xbox one S - every time you turn it on it shows the screen for stage three updates “applying” then fails out to an E200 (usually). So I launch it into troubleshoot and run through the erase everything option - that triggers a reboot, and takes me right back to the “applying” followed by error and auto shutdown. So I try the offline update from USB - it makes it all the way to the reboot and “applying” then fails out. So, I replaced the hard drive - same thing with all trouble shooting options. Try to continue to hold the buttons to force a offline usb update - same thing. Not sure what else to do. It seems to me like it is trapped in some kind of flash based cycle that keeps it thinking it is in the applying stage of an update, every time it restarts. Any help would be awesome.
It sounds like you may have a corrupted usb stick or at the very least corrupted data on it. If you’re able to remove the hard drive and wipe and reformat it on your pc that should stop the loop.There are several guides on Youtube for reformatting and setting up/partitioning an xbox hard drive. Also if you’re able to get a hold of another usb stick and redownload osu1 from MS. I’ve had it happen a few times with a one x and a couple one s models. Not much fun. Hope this helps